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The Global X S&P 500 Risk Managed Income ETF, trading under the ticker XRMI, aims to closely replicate the overall financial performance—both capital appreciation and income generation—of the Cboe S&P 500 Risk Managed Income Index, as measured before any fund fees and expenses.
Is XRMI's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.
CCOR, BALT, XRMI, PHDG and HEQT are included in this Analyst Blog.
Investors seeking to remain invested in the equity world with downside protection should invest in low-beta ETFs.
Investors may remain invested in the equity world with some downside protection by investing in low-beta ETFs.
The Global X S&P 500 Risk Managed Income ETF is a covered call fund that uses a collar strategy for protection. The collar strategy limits upside potential and may not provide effective protection in most market scenarios. XRMI underperformed since January 2022, even though we experienced a bear market during this time.
The Global X S&P 500 Risk Managed Income ETF seeks to provide investment results that correspond generally to the Cboe S&P 500 Risk Managed Income Index. XRMI does this by selling monthly at the money call options and buying 5% out of the money puts, while holding the Index outright. This structure significantly buffers volatility, but at the same time gives up most of the upside in a bull market.